You are asked to evaluate two projects. The cash flows are as follows: Discount Rate = 9% (compounded monthly, or .0075 per month) Year 0 =Project 1 -$125,000 (outflow) Year 1 - $40,000 Year 2 - $65,000 Year 3 - $55,000 Year 4 - 0 Project 2 Year 0, cash outflow -$125,000 Inflows: Year 1 $40,000 Year 2 $40,000 Inflows: Year 1 $40,000 Year 2 $40,000 Year 3 $40,000 Year 4 $40,000 Which project do you choose? Project 2 because the cash flows for a longer period Project 2 because the NPV of 2 is higher Project 1 because the NPV is higher Neither since both projects have negative present value